{"id":27890,"date":"2026-05-07T22:44:23","date_gmt":"2026-05-07T22:44:23","guid":{"rendered":"https:\/\/bitunikey.com\/news\/kalshi-denies-prediction-markets-are-gambling-products\/"},"modified":"2026-05-07T22:44:50","modified_gmt":"2026-05-07T22:44:50","slug":"kalshi-denies-prediction-markets-are-gambling-products","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/kalshi-denies-prediction-markets-are-gambling-products\/","title":{"rendered":"Kalshi denies prediction markets are gambling products"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Prediction markets closed out Consensus Miami 2026 as the subject of a live debate on whether they are regulated financial derivatives or gambling products operating outside state law.<\/p>\n<div id=\"cn-block-summary-block_f3b2ebd4d154304d16436d6fd2342edb\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>The closing Consensus Miami 2026 session debated whether prediction markets are CFTC-regulated financial instruments or unlicensed gambling under state gaming laws.<\/li>\n<li>CFTC Chairman Michael Selig said the fight could reach the Supreme Court, as the agency has already sued five states for treating its registered exchanges as gambling platforms.<\/li>\n<li>Kalshi\u2019s valuation surged from $22 million in 2024 to $22 billion by March 2026, with sports contracts now accounting for 85% to 90% of its trading volume.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>Prediction markets closed out Consensus Miami 2026 on Thursday as the subject of the conference\u2019s final debate, pitting the CFTC\u2019s position that event contracts are swaps against a growing coalition of state attorneys general who argue the platforms are unlicensed gambling businesses. <\/p>\n<p>The session brought the conference\u2019s policy agenda to a head after three days of regulatory and legislative sessions.<\/p>\n<p>CFTC Chairman Michael Selig, who attended Consensus for the first time this year, has made the prediction markets jurisdictional fight a defining feature of his tenure. <\/p>\n<p>\u201cWe expect these matters to go up to the Supreme Court,\u201d Selig said, as the agency has already sued Arizona, Connecticut, Illinois, New York, and Wisconsin for attempting to regulate CFTC-registered exchanges under state gambling law.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\">Why states are pushing back<\/h2>\n<p>The core disagreement is structural. Kalshi and Polymarket argue their platforms operate like futures markets, with no house setting odds and no counterparty absorbing all risk. <\/p>\n<p>DraftKings president Paul Liberman acknowledged the consumer experience is identical to sports betting. \u201cFor the end user, yes,\u201d he said, \u201cwhether they\u2019re putting a bet on the sportsbook or whether they\u2019re doing a trade on the Celtics here, they definitely feel as though it\u2019s the same.\u201d <\/p>\n<p>Wisconsin filed complaints against Kalshi, Polymarket, Coinbase, and Robinhood in April, arguing their contracts meet the state\u2019s legal definition of a bet.<\/p>\n<p>A bipartisan coalition of 41 state attorneys general has separately called for federal clarity on jurisdiction. Senator Marsha Blackburn\u2019s subcommittee has scheduled a hearing for May 20, sitting directly between the Consensus debate and the Senate\u2019s CLARITY Act markup window. <\/p>\n<p>As crypto.news reported, Selig has offered platforms a framework: the CFTC will fight state interference, but exchanges must accept surveillance, insider trading enforcement, and a derivatives-style rulebook in return.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Prediction markets closed out Consensus Miami 2026 as the subject of a live debate on whether they are regulated financial derivatives or gambling products operating outside state law. Summary The&hellip;<\/p>\n","protected":false},"author":1,"featured_media":27891,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-27890","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/27890","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=27890"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/27890\/revisions"}],"predecessor-version":[{"id":27892,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/27890\/revisions\/27892"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/27891"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=27890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=27890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=27890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}